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The New Jersey Board of Public Utilities (NJBPU) approved Phase 1 of the Garden State Energy Storage Program (GSESP). This transformative effort, formerly known as the New Jersey Storage Incentive Program (NJ SIP), is designed to significantly expand the amount of grid-scale energy storage capacity in New Jersey. This ambitious program directly addresses demand growth and limited supply, the root causes of recent rate increases, while simultaneously building a major part of the state’s clean energy future.

“This is a pivotal moment for New Jersey’s energy landscape,” said NJBPU President Christine Guhl-Sadovy. “The Garden State Energy Storage Program is part of our commitment to addressing the causes of rising electric rates, ultimately putting more money back into the pockets of New Jersey families. This isn’t just about meeting our climate goals, it’s about making sure every family can afford to keep their lights on and their home comfortable,” she said.

GSESP is a multi-phase program designed to deploy 2,000 megawatts (MW) of energy storage by 2030, a mandate established by the Clean Energy Act of 2018. Energy storage systems are crucial for integrating intermittent renewable energy sources like solar, strengthening grid resilience against outages, and reducing carbon emissions. The program is the culmination of two years of extensive stakeholder engagement, incorporating valuable feedback from a diverse range of industry experts, environmental groups, and public representatives.

Phase 1 of the program will help New Jersey quickly add these new energy storage systems to the grid. This extra capacity will help bring down the high costs that have been driving up electricity bills, thus supporting state efforts to keep rates affordable for consumers.

By bringing more energy storage online, especially during times of high electricity demand, GSESP will help increase the overall supply of power that can be dispatched when needed. This increased supply is expected to mitigate wholesale electricity costs, which are a significant component of electric bills.

Key Program Components:

GSESP is a comprehensive initiative with multiple phases. This program will include both large-scale grid infrastructure and smaller, localized energy storage solutions.

Phase 1: Transmission-Scale Energy Storage will strategically procure at least 1,000 MW of larger projects directly connected to the main power grid through competitive bidding.

• Tranche 1: The first solicitation aims to award 350-750 MW. The pre-qualification process starts on June 25, 2025, with a final bid submission deadline of August 20, 2025. The NJBPU expects to issue awards for Tranche 1 by October 31, 2025.
• Tranche 2: A second solicitation will be prepared for the first half of 2026 to secure the remaining capacity needed to reach the 1,000 MW target for Phase 1.

Phase 2: Distributed Energy Storage is expected to launch in 2026. This phase will focus on incentives for smaller energy storage systems connected to local distribution grids, including both “in front of the meter” (grid-connected) and “behind the meter” (residential or commercial) systems. These incentives will be both fixed and performance based.

A potential Phase 3 may introduce a performance-based incentive for transmission-scale systems, but this phase is currently being evaluated and is deferred.

See the New Jersey Clean Energy Program website at www.njcleanenergy.com/storage. Application materials will be posted by June 25. For any program-related questions, you can also reach out to energy.storage@njbpu.nj.gov.